BOE’s Ramsden sees no near-term QE amid ongoing tightening focus

Dave Ramsden, the Bank of England’s deputy governor, expressed that further quantitative easing (QE) is not expected in the near future. This statement comes as the Bank continues its focus on quantitative tightening (QT), consistently reducing its balance sheet of government bonds accumulated during previous QE phases. The BoE’s decision earlier in September kept the Bank Rate steady at 3.75%, with plans to unwind existing bond purchases over several years. Ramsden’s comments suggest the Bank’s current trajectory remains hawkish, with no immediate shift towards asset purchases. Key Takeaways Ramsden’s remarks appear consistent with a continued hawkish stance from the BoE, reducing expectations for near-term QE. Market pricing suggests a lower likelihood of interest rate cuts, reflecting Ramsden’s comments and the ongoing QT policy. Current odds in prediction markets show strong support for a rate increase scenario rather than a decrease after the November BoE meeting. What to Watch Moving forward, market participants will closely monitor any further statements from BoE officials that could clarify the Bank’s stance on interest rates and QE. Key indicators include upcoming inflatio...